Snapchat, the ephemeral messaging app which competes with Meta’s Facebook and Instagram among others, sees augmented reality (AR) as a clear business opportunity in India. 

Snap Inc, the $4.6-billion company that owns the app, is investing aggressively in India and has doubled its team strength in the last four months to make further inroads to woo young users and advertisers with its innovative AR features, says Pulikt Trivedi, Snap India Managing Director. 

Earlier this month, the US-based Snap announced laying off 500 people which is 10% of its global workforce. However, the company remains bullish on India.

In an exclusive conversation with exchange4media, India Managing Director of Snap Inc., Pulkit Trivedi says, “I am very bullish on the India opportunity. India's internet economy is experiencing rapid growth. The digital advertising market has seen a significant surge at around $10 billion in 2023, with projections indicating that this will more than double by 2028, driven by growth in online commerce, online video consumption, and the rise of influencer marketing led by content creators.”

“Young India is on Snapchat. The substantial growth in our user base, reaching 200 million users in India, in a short period represents how young India is embracing our platform and looking at Snap as their space to build real and authentic connections,” says Trivedi. 

With 900M+ internet users, 650M+ smartphone users, and a thriving digital ecosystem, Snap hopes to expand its user base further in India, shared Trivedi who joined Snap as its India MD in November 2023.

“Snap will continue to build value for advertisers and contribute to India’s Digital Adex growth”, says Trivedi, adding, “Snapchat is uniquely positioned, distinguishing itself with a predominantly young audience that holds considerable influence over buying or purchase decisions, not only for themselves but within the household. With India accounting for 20% of the global Gen Z population, the potential for businesses to engage with this demographic is substantial.” 

According to Trivedi, brands and businesses are looking for ways to engage with the young audience to drive sustained growth. 

“Our long-term plan is to grow our community, serve our advertisers by providing effective ways to engage with young audiences on Snapchat to achieve their brand and business goals, allow creators to engage with young Indians, and build a sustainable business,” he says. 

“To achieve these goals, the company has been hiring the best talent from the industry and expanding teams across three locations: Mumbai, Delhi, and Bangalore. We have more than doubled our team in India in the last four months. The next few years in India look incredibly promising and exciting for us," Trivedi explains. 

Trivedi says that this is the best time to be in India since the country has a flourishing digital and start-up ecosystem. India is now seen as a leader in digital payments and its online commerce market is the third largest in the world. The India stack has made it possible for digital services to be accessed by citizens across the country. 

“Our goal is to build a sustainable business in India. That starts with building a high-energy team that is excited about our vision to grow our community, serve our advertisers, build a strong creator ecosystem platform and sustain investments in what is our core strength – Augmented Reality (AR). These elements are pivotal to building a sustainable business in India,” he noted.

Competition

Snapchat is an antidote to traditional social media, Claims trivedi, lauding his platform. 

“Snapchat was built during the dawn of social media when people were starting to feel pressured to post the most perfect stuff of themselves. Social media was becoming a popularity contest with users chasing likes, comments, and followers. Snapchat was designed to offer people an alternative,” he noted. 

The design of Snapchat contributes to a positive user experience, reflected in heightened receptivity to ads compared to other platforms. Studies have shown that Snapchatters exhibit 1.2x more favorability toward ads, creating a more favourable impact on brand awareness, preference, and purchase intent that is 2x higher than competitors, claims Trivedi. 

SnapChatters don’t engage on other SM platforms

A significant portion of Snapchatters do not engage with other major social media platforms daily, therefore providing brands and businesses the opportunity to connect with young audiences who may not be as easily reached on other platforms. 

"The positivity of our platforms offers a unique advantage to brands, providing a positive environment where advertising fosters a halo effect of positive emotions, which is unlike any other platform. And when I say that I mean Snapchat's distinctive capabilities puts Snapchatters in a particularly positive emotional state. An Alter Agents study states that the net positive emotion on Snapchat is  79%, more than the average of 68% experienced on other platforms," says Trivedi. 

Ad opportunities  

Snap has expanded its monetization services to cater to advertiser objectives across the funnel. It provides measurement tools that can track conversions, purchases, and sign-ups effectively, with a focus on maximizing return on ad spend (ROAS). 

“Our recent ad tech updates have further enhanced engagement quality, volume, and measurement – garnering attention and appreciation from advertisers. We will continue to enhance our performance ad platform, driving lower funnel goals for marketers and performance-focused advertisers with the overarching goal of delivering measurable results and driving business outcomes for our advertising partners in India's dynamic market landscape,” he notes.